You’ve decided that you would like to be your own boss, however unsure whether to start your own venture, buy an existing business or invest in a franchise.
Starting your own business venture requires a passionate vision to fulfill your own deep desire to challenge the status quo, offer a ‘unique’ value proposition that customers buy into, and at the end of the day basically needs you to have very deep pockets to sustain and grow your concept.
Buying an existing business can offer you instant cashflow, but you need to ensure that you are up to the challenge of delivering the same standards of what your predecessor left behind to you and your hard-earned cash paid for.
It’s difficult to change, unless slow and steady. Oh and social media can be a bitch.
If you are unprepared to deal with any of the above, franchising may be an option to consider.
And you’re not the only one to think so.
Franchising is thriving in Australia.
Franchising Australia & IBISWorld reveals:
We’ve put together our top 7 key benefits and reasons why buying a franchise may be the right choice for you to owing your own business and reaching your financial goals.
1. You’re Buying a Proven Formula
When buying into a franchise, your buying into a proven business model.
The franchisor has done the hard yards of fine-tuning what does and does not work, often over many years. You’re buying into a tried and tested, proven and stable model.
2. Access To Training And Support
Many franchisors offer training, guidance, and support to their franchisees.
You will be fully inducted and taught everything about the business, from key operations, budgeting, purchasing to on the job training.
It is in their best interest to ensure that you have all the tools necessary for you to operate the franchise.
Many franchises have a built-in support system meaning they are only a phone call or visit away to assist you.
There is also the opportunity of establishing relationships with other franchisees who can be open, supportive and also provide you with guidance.
3. Brand Power
What could be better than starting a business with a brand that customers already recognise?
Joining a popular and reputable franchise with a strong corporate image means that you’re already starting with a customer base that’s familiar with your business.
This helps you get your business off the ground much faster allowing you to concentrate more on building your business.
4. Minimised Risk
Buying into a franchise means that you are buying into a proven concept and security of being part of a bigger network.
While there’s never a guarantee of success, having a wealth of experience behind you, the backing of a proven system can significantly increase your chances of success in establishing a prosperous business.
5. You Are Still Your Own Boss
As a franchisee, the business setup structure is different from starting your own business or buying an existing business.
However, you are still your own boss and in full charge & control in running your own show.
You manage and are accountable for the operations of the entire business.
You just need to understand that there is a formula and system in place that you need to follow to ensure your increase in success.
6. You’re Not On Your Own
Let's be clear - Franchisors want to ensure that their franchisees succeed. If you do not succeed, neither do they!
Good franchises offer direct support with many having an area managers/training staff out on the field, lending a hand and offering advice.
They can come out to you and spend the time needed to help you or can be just a phone chat away.
There is also the opportunity to establish relationships with other franchisees who can provide you with a wealth of knowledge and advice.
From the moment you start, you are surrounded by a support system, so you're never left on your own.
7. Make Sure You Do Your Own Research
Talk to other Franchisee's. A simple phone call to existing franchisees will unlock the answers you need, and you will be surprised to know that most are always too happy - good, bad, warts and all - to share their journey with a potential new team member.
Question the support they receive, how easy it is to get stock, if they are getting marketing & business support.
Ask these 'brutal questions' to see if they are truly happy with their business and importantly if they are making money.
Call at least 10 Franchisees, from within your state and also interstate (if they have them)
Why?
Good question!
Think laterally - Just because people have a drivers license doesn't mean they can drive a car properly!!
The same goes with owning a business. Just because people "bought" a business doesn't mean they can manage/run a business either.
One person's business journey is always different from another's person's business journey.
It all comes down to being an astute operator and basically knowing how to manage the many moving parts of running a business.
Page Updated March 4, 2020
